H2 Green Steel (H2GS) is planning on becoming a large-scale steelmaker in the Boden-Luleå region of Northern Sweden and plans to utilize fossil-free production methods.
Steel production is scheduled to commence in 2024 and HSGS has forecasted a yearly production capacity of 5mn mt by 2030. The company cited the future “giga-scale green hydrogen plant” as an integrated part of the steel production site in a news release on Tuesday.
H2GS will target large OEMs in Europe and is building the€2.5bn ($3.04bn) facility in an area that offers the optimum setting to produce fossil-free steel. The region holds access to renewable energy sources, high-grade iron ore, and a large port in Luleå.
Swedish commercial auto manufacturer Scania’s, current chief executive officer, Henrik Henriksson, will lead the company, H2GS noted in its statement. A Scania spokesperson said that of its trucks’ total weight of 6mt, 5mt consists of steel which is produced with a considerable carbon footprint at present.
The company stated that this project will significantly contribute to serving the Paris Climate Agreement goal and has been developed in close collaboration between Vargas, along with various investors.
H2GS will create around 1,500 jobs in the Norrbotten region, and the endeavor will increase Swedish net export value by approximately SEK30bn ($3.62bn).